2 Answers

There is nothing called hotsync in exchange server. It is ActiveSync, the protocol used for push services on windows handhelds and other devices.
There will be no problems with your handheld devices even after upgrade.

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You may have tried Exchange ActiveSync in VersaMail
When you setup an Exchange ActiveSync account in VersaMail, you are asking your Treo to synchronize email and your calendar with an Exchance 2003 server. In order to prevent duplicates, VersaMail disables Calendar synchronization via HotSync while the account exists on your Treo.
So if you are an Exchange ActiveSync (EAS) user, you have a choice; you either sync wirelessly or you can delete the EAS account in VersaMail and can then sync your Calendar via HotSync. You cannot do both unfortunately.

OK. Hope this helps you because it fixed my problem. Go into palm desktop. Go to hot sync, click on custom Go to Calendar (Outlook) and double click on that. At this point click on settings. Under conflict resolution choose "outlook wins". Then go out and check syncronize files and set as default. Click done and this should resolve the issue. Reply if this is confusing.

I was tring all the possible ways to resolve the issue. At last got a solution for my problem. Hope this will work for you all. Download the "OutlookConduitUpdater.zip" and install. This will resolve the calender "do nothing" while sync.

Answers on Chapura PocketMirror errors, Chapura maintains a really good database of fixes for errors with their PocketMirror Outlook PIM conduits.
Copied from the site:
First, make sure you are running the latest version of PocketMirror version 3.1.7. To check which version you are currently running, please see Chapura FAQ PM089.
If you are still receiving the same error after installing the latest version of PocketMirror then continue with the following steps. If Option 1 does not resolve the issue, then move onto Option 2 and so on:
Option 1:
Run the Outlook 2000/2002/2003 "Detect and Repair" utility (You will need the Office/Outlook CD-ROM).
1. In Outlook click "Help/Detect and Repair".
2. After the repair is complete, reboot your computer and synchronize your handheld.
Option 2:
If you are running Windows XP and this error is occurring, please perform the steps in Chapura FAQ PM198.
Option 3:
If this OLE error occurs ONLY when synchronizing with Outlook closed, then please see Chapura FAQ PM053 "Outlook Backup Add-in causes HotSync failure when Outlook is closed."
Option 4:
If you have a laptop computer and are running Windows 2000/Outlook 2000, this OLE error may be caused if your laptop goes into sleep/hibernate mode when Outlook is open. To fix this problem reboot your computer and try to synchronize your handheld again. In the future make sure Outlook is closed when your computer "hibernates".
Option 5:
Uninstall and reinstall 3rd party conduits such as the TakeNote, DayNotez, PocketQuicken, QuickWord, Quicksheet, etc. To check for these conduits:
1. Click on the HotSync Manager icon (circular red/blue arrows on the bottom right of your PC screen, see image.) Note: The HotSync Manager icon may be hidden on Windows XP, please click the round white arrow button (see image) to unhide the icon.
HotSync Manager Icon Example
2. Click on "Custom".
If you see any of the above mentioned program conduits listed in the "Custom" screen ABOVE the PocketMirror conduits (Outlook Calendar, Outlook Contacts, Outlook Tasks & Outlook Notes) then uninstall any of these 3rd party programs. To do this go to "Start/Settings/Control Panel" or "Start/Control Panel" and double-click on Add/Remove programs. Then reinstall these programs from the original source media.
Option 6:
If you are using Outlook 98/2000, please follow the steps in Chapura FAQ PM108 "How do I change Outlook from "Internet Only" to "Corporate/Workgroup" Mode?"

delete local user name
in desperation, after removing the user name from the handheld and still not getting any results or ANY syncs, I launched Chapura Settings from My Desktop, deleted my user name, re-created my same user name, same spelling, and then everything worked first time every time.
I have the latest Pocket Mirror PMStdUpdate3171.exe loaded on top of what came on the installation CD.
to sum up, I deleted the user name from both handheld and PC and recreated it only on the PC, then sync'd with outlook 2003 without even a reboot.
good luck

Have you setup an EAS account in VersaMail?
The VersaMail application on your Treo 650 supports Exchange ActiveSync, which allows synchronization of Email and Calendar wirelessly with Exchange Server 2003. If an EAS account exists on the handheld the Calendar conduit will disable itself to avoid duplicates.
Go to VersaMail on your Treo650
Select Menu: Accounts: Account Setup
Check to see if any EAS accounts exist on the device by selecting and account, then Edit...
One the first screen check Mail Service. Do any of them say "Exchange Activ..."
If yes you'll need to delete that account to sync calendar entries.